A monopoly is allocatively efficient compared to perfect competition

Marginal revenue product falls as more labor is hired because

A) the price of the product must fall for a perfectly competitive firm to sell more. B) the marginal product of labor is negative as additional units of labor are hired. C) the wage rate rises as more workers work more hours. D) the marginal product of labor falls as a result of the law of diminishing returns.

At a firm's current output level of 200 units per week, it has 10 employees at a weekly wage of $500 each. Raw materials, which are ordered and delivered daily, cost $1,000 per week. The weekly cost of the firm's capital is $1,250 . Which of the following statements is correct?

a. Total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250. b. Total variable cost is $6,000 . total fixed cost is $1,250; total cost is $7,250. c. Total variable cost is $1,250; total fixed cost is $6,000 . total cost is $7,250. d. Total variable cost is $2,250; total fixed cost is $500; total cost is $2,750. e. Total variable cost is $1,500; total fixed cost is $1,250; total cost is $2,750.